It’s an important update for Employees’ Provident Fund Organisation (EPFO) subscribers! From the month of August, old PF deduction rates will be applicable for employees and employers. Earlier on May 19, the Ministry of Labour & Employment had implemented the decision to cut employees’ provident fund (EPF) contributions to 10 per cent from the existing 12 per cent for three months till July.
The Ministry of Labour & Employment had said that the decision would increase 4.3 crore organised sector employees’ take-home pay and reduce the liability of 6.5 lakh employees reeling under liquidity crunch under lockdown to contain COVID-19. The decision was estimated to infuse liquidity of Rs 6,750 crore in the three months. The labour ministry in a notification had stated that the reduction in EPF contributions shall be applicable in respect of wages payable by it for the months of May, June and July, 2020. Therefore the take-home pay due in June, July and August would increase, while the employers’ contributions due in June, July and August would reduce, Ministry of Labour & Employment had said.
Earlier on July 27, it was reported that the Employees’ Provident Fund Organisation (EPFO) extended its availability and reach of its online services and updated Know your Customer (KYC) data for its 73.58 lakh subscribers during April to June amid COVID-19 pandemic. This includes Aadhaar seeding for 52.12 lakh subscribers, mobile seeding (UAN activation) for 17.48 lakh subscribers and bank account seeding for 17.87 lakh subscribers, says Ministry of Labour and Employment. KYC is a one-time process which helps in identity verification of subscribers through linking of Universal Account Number (UAN) with KYC details.